Home-Builders Are Under Pressure: Here's The Play
InTheMoneyStocks.com | Nov 15, 2018 12:58PM ET
As we all know, the leading home-builder stocks have been under severe selling pressure since late January 2018. Higher interest rates have been the catalyst for the decline in the sector. The Federal Reserve continues to signal that it will continue to steadily increase rates to a more normal level as long as the economy is strong. This action should keep the home builders somewhat depressed for a bit. Many of the leading builders have now fallen so much that they actually look attractive.h3 Long-Side Entry/h3
One particular stock that I'm watching closely is DR Horton (NYSE:DHI), which topped out at $53.32 a share in January 2018. Today, DHI is trading around $33.30 a share. Traders and investors should now watch the $30.50 area as the next major support level. That's where it staged a breakout in February 2017. Often, when stocks test past break-out levels they find defense from the institutional money. This is where I will be looking to enter DHI stock on the long side.
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